LayerZero recently closed a $6 million funding round to help develop its cross-chain messaging protocol.
Moonbeam, a DeFi protocol developed on one of Polkadot's parachains, has announced that it is joining the development of the Polkadot solution. cross-blockchain messaging, LayerZero, with the aim of promoting operability between different blockchains.
The protocol was launched in January on Polkadot, after having obtained one of the slots of available parachains. The parachains or Parallel chains are decentralized and customizable blockchain networks, built to meet the needs of each specific project. These parallel blockchains leverage the infrastructure of Polkadot and Kusama (its test network) to develop their own protocols.
What is a cross-chain communication protocol for?
Although most blockchains are decentralized, Each network has its own custom standard for the applications that are built on top of them.This makes it very difficult for dApps to work with other native applications on different blockchains.
LayerZero is a cross-chain communication solution, developed with the aim of eliminating this barrier and strengthening the connection, communication and interoperability between users and developers of different blockchain ecosystems.
Derek Yoo, CEO of Moonbeam, has explained that the decision to incorporate LayerZero will offer greater utility to users and will improve the relevance of applications for developers. In this way, LayerZero would join Polkadot XCM and Axelar, other communication protocols between chains already used by Moonbeam, which would offer the DeFi ecosystem omnichain functionalities.
For now, LayerZero allows the Communication and messaging between chains via Ethereum decentralized applications Optimism, Avalanche, Arbitrum, Binance Smart Chain, and Fantom.
Moonbeam one of the most promising projects in the crypto ecosystem
Polkadot's parachain has seen a number of important developments in recent months. First, it managed to raise more than $1.000 Billion in DOT Tokens to Get One of the Parachain Slots on Polkadot, before being able to launch the chain in January.
The protocol later integrated into Lido Finance and added Lido Liquid Staking among its offerings, expanding its ties with Ethereum, and has recently obtained $6 million in a new round of funding, which will be used in the Blockchain development.
What is LayerZero?
LayerZero is a blockchain interoperability protocol created in 2021, and aims to offer the possibility of sending and receiving messages securely, using a configurable low-level communication system, on which it will be possible to build cross-chain, multichain or omnichain applications.
This way, developers will be able to build cross-chain applications such as a cross-chain decentralized exchange or a multi-chain yield aggregator without relying on a custodian or intermediary chains.
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